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Automotive Exports July 2018

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www.automotive-exports.com<br />

Monthly automotive aftermarket magazine<br />

<strong>July</strong> <strong>2018</strong><br />

SIA Motor Show<br />

Displays Latest Trends<br />

<strong>Automotive</strong> Sector Produces<br />

Almost A Half Million<br />

Vehicles In Q1<br />

<strong>Automotive</strong> Set Record<br />

In Year On Year <strong>Exports</strong>


Monthly automotive aftermarket magazine<br />

GROUP CHAIRMAN<br />

H. FERRUH ISIK<br />

PUBLISHER:<br />

İstmag Magazin Gazetecilik<br />

İç ve Dış Ticaret Ltd. Şti.<br />

Genel Müdür<br />

Managing Editor<br />

Mehmet Söztutan<br />

mehmet.soztutan@img.com.tr<br />

Mehmet Soztutan, Editor-in-Chief<br />

mehmet.soztutan@img.com.tr<br />

The Turkish automotive<br />

industry heralds a new era<br />

The five companies taking part in the production of Turkey's first domestically<br />

manufactured automobile, announced that the incorporation and registration<br />

procedures of Turkey's Automobile Initiative Group were completed.<br />

The manufacturing company was named Turkey's Automobile Initiative Group.<br />

Five local firms - Anadolu Group, BMC, Kök Group, Turkcell and Zorlu Holding<br />

with 19 percent of shares each- and the Union of Chambers and Commodity<br />

Exchanges of Turkey (TOBB) with 5 percent of shares will jointly lead the firm.<br />

The prototype of the first domestically produced car - expected to be produced<br />

in Ankara - would be ready in 2019 and enter the market in 2021.<br />

<strong>Automotive</strong> industry, with its vehicles and components manufacturing subsectors,<br />

is one of the major driving forces behind the Turkish export drive. Since<br />

the automotive industry operates on a global basis, it also has a profound effect<br />

on the Turkish automotive components industry.<br />

It should be noted that the auto parts industry of Turkey has developed rapidly<br />

as a consequence of developments in the automotive industry. The Turkish<br />

auto parts industry with its large capacity, wide variety of production and high<br />

standards, supports automotive industry production and the vehicles in Turkey<br />

and also has ample potential for exports.<br />

The Turkish automotive and auto spare parts industry have prospered dynamically<br />

in line with ever increasing demand from abroad. So, business people operating<br />

in the industry have become outward oriented more than ever before. This fact<br />

is also reflected through the pages of our publications.<br />

In evaluating the future export potential of the automotive industry,<br />

using country-based statistics, it is possible to indicate that Turkish automotive<br />

industry has comparative advantage regarding labor productivity, labor cost and<br />

the share of capital in the value added, especially with respect to the mature<br />

producers in the world. More than half of these manufacturers compete in<br />

international markets and set high standards of export figures.<br />

Our publications remain at the service of those businesses people seeking to<br />

increase their share in the increasingly competitive foreign markets.<br />

We are convinced that the fairs and exhibitions in which we participate<br />

have turned out to be instrumental to increase business opportunities in the<br />

automotive industry.<br />

We wish lucrative trade for all business people.<br />

Responsible Editor<br />

Yusuf Okçu<br />

yusuf.okcu@img.com.tr<br />

Editor<br />

İbrahim Küpeli<br />

ibrahim.kupeli@img.com.tr<br />

Advertising Manager<br />

Nihat Akman<br />

otomotivnihat@gmail.com<br />

Foreign Relations Manager<br />

Yusuf Okcu<br />

yusuf.okcu@img.com.tr<br />

Correspondent<br />

İsmail Çakır<br />

ismail.cakir@img.com.tr<br />

Graphics & Printing Manager<br />

Tayfun Aydın<br />

tayfun.aydin@img.com.tr<br />

Design & Graphics<br />

sami.aktas@img.com.tr<br />

Chief Accountant<br />

Zekai Turasan<br />

zturasan@img.com.tr<br />

Finance Manager<br />

Mustafa Aktas<br />

mustafa.aktas@img.com.tr<br />

Subsciption<br />

İsmail Özçelik<br />

ismail.ozcelik@img.com.tr<br />

HEAD OFFICE:<br />

Evren Mahallesi Bahar Caddesi Polat İş Merkezi<br />

B Blok No:1 Kat: 4 Güneşli - Bağcılar/ İstanbul<br />

Tel: (90.212) 604 51 00<br />

Fax: (90.212) 604 51 35<br />

www.img.com.tr turkey@ihlas.net.tr<br />

KONYA:<br />

Metin Demir<br />

Hazım Uluşahin İş Merkezi C Blok<br />

Kat: 6 No: 603-604-605 KONYA<br />

Tel: (90.332)238 10 71 Fax: (90.332)238 01 74<br />

PRINTED BY:<br />

İHLAS GAZETECİLİK A.Ş.<br />

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Tel: 0212 454 30 00<br />

www.ihlasmatbaacilik.com<br />

Please mention<br />

<strong>Automotive</strong> <strong>Exports</strong><br />

when writing to advertisers


Monthly automotive aftermarket magazine<br />

Turkey’s Oyak, Renault extend<br />

partnership for 27 years<br />

Süleyman Savaş Erdem<br />

Turkey's Oyak and French automotive<br />

producer Renault Group signed an<br />

agreement in France to extend their<br />

partnership for 27 years.<br />

The agreement was signed by<br />

Süleyman Savaş Erdem, the general<br />

manager of Oyak, and Thierry Bollore,<br />

the chief operating officer of Renault<br />

Group on 26th of June.<br />

With no changes on the shares<br />

distribution between the shareholders,<br />

the signed agreement aimed to cover<br />

industrial and commercial activities<br />

and common goals of both parties in<br />

Turkey.<br />

Noting that the new agreement will<br />

provide significant added value to<br />

our country's economy, Erdem said:<br />

"<strong>Automotive</strong> is the leading sector with<br />

a share of 21 percent of total export<br />

volume, which is about $150 billion."<br />

"We believe in the future of Turkey<br />

and we will continue our investments<br />

without deceleration," Erdem added.<br />

He also added that Oyak-Renault<br />

joint venture is in the first place in<br />

automobile exports with 288,000<br />

units.<br />

Bollore, for his part, said the renewal<br />

of the agreement opens a new page<br />

in the company's history in Turkey.<br />

"Turkey is Renault Group's 6th largest<br />

global market and we rank first in<br />

passenger car exports in Turkey," he<br />

added.


Monthly automotive aftermarket magazine<br />

Turkish<br />

auto giant<br />

to export<br />

400 buses<br />

to Romania<br />

Turkish automotive giant Otokar has signed a<br />

deal with the Bucharest Municipality to supply<br />

some 400 buses.<br />

The contract is the largest ever bus export deal<br />

ever secured by a Turkish automotive company.<br />

Otokar, a subsidiary of the Koç Holding, in a<br />

statement, said that the company exports buses<br />

for public transport to 50 different countries.<br />

As part of its deal with the Bucharest Municipality,<br />

Otokar will export as many as 400 buses in<br />

separate batches in <strong>2018</strong> and 2019. It will also<br />

provide after sales services for eight years.<br />

The deal signing ceremony was recently held at<br />

the Bucharest City Hall, with city Mayor Gabriele<br />

Firean and Otokar General Manager Serdar<br />

Görgüç in attendance.<br />

Apart from its native Turkey, Otokar buses<br />

have also been preferred by various European<br />

countries like France, Italy, Spain, and Germany.<br />

Otokar General Manager Serdar Görgüç said<br />

they participated in the tender, held to meet the<br />

Romanian capital's increasing public transport<br />

needs, through its Otokar Europe, which was<br />

established in 2011 to better serve European<br />

customer. He added that major global<br />

companies from Europe and Turkey - Europe's<br />

bus manufacturing base - also participated in the<br />

tender.<br />

"As Turkey's leading manufacturer of buses, we<br />

want to offer our most modern vehicles that are<br />

worthy of Bucharest. It is a great honor for us to<br />

be chosen by the Bucharest Municipality for not<br />

only the vehicles but also the after-sales services,"<br />

he said. "Bucharest will have our largest fleet<br />

of buses after Istanbul. In many major cities in<br />

Turkey and Europe, we already have thousands<br />

of buses carrying passengers every day." He<br />

added that prior to the deal with Bucharest<br />

Municipality they received another order from<br />

Jordan's capital Amman which proves that<br />

their buses have performed well in the export<br />

markets.<br />

14 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

Tüpraş, Ford, Toyota top Turkey’s<br />

industrial enterprise lineup<br />

Turkish refinery giant Tüpraş<br />

topped the list of Turkey's Top 500<br />

Industrial Enterprises 2017 survey<br />

released by the Istanbul Chamber<br />

of Industry (ISO).<br />

According to the survey, Tüpraş's<br />

production-based sales last year<br />

totaled 51.1 billion Turkish liras<br />

($14 billion).<br />

International car manufacturer<br />

Ford was the second-biggest<br />

company with production-based<br />

sales of TL 22.7 billion ($6.2<br />

billion), followed by automaker<br />

Toyota, which rose from sixth to<br />

third with TL 17.8 billion ($4.9<br />

billion).<br />

Three other automobile<br />

manufacturers, Tofaş, Oyak-<br />

Renault, Hyundai Assan, made it<br />

into the top 10.<br />

Steel producers Isdemir, Erdemir<br />

and Içdaş Çelik, and appliance<br />

manufacturer Arçelik were the<br />

other firms in the top 10.<br />

While this year Isdemir and<br />

Erdemir rose to seventh and<br />

eighth places, respectively,<br />

Turkey's largest electric power<br />

producer Elektrik Üretim A.Ş.<br />

dropped from seventh to 18th<br />

place in 2017.<br />

The survey said the total<br />

production-based sales of industry<br />

giants posted their highest growth<br />

in 13 years, up 33.2 percent yearon-year,<br />

to reach TL 653 billion<br />

($178.9 billion).<br />

The growth stemmed from the<br />

hike in exchange rates, which<br />

plays an important role in export<br />

revenues, along with growing<br />

domestic and foreign demand.<br />

ISO 500 companies' exports also<br />

surged 17 percent last year to<br />

$64.5 billion, making up 42.8<br />

percent of Turkey's total industrial<br />

exports.<br />

Ford was the top exporting<br />

companies, recording nearly<br />

$4.80 billion of exports in 2017.<br />

Toyota followed with $4.59<br />

billion, Tofaş with $3.27 and<br />

Oyak-Renault with $3.18 billion.<br />

Financial expenses, which<br />

continue to be the main<br />

determinant of profitability,<br />

increased by 21.3 percent to TL<br />

35.2 billion from TL 29 billion and<br />

accounted for more than half of<br />

the operating profit of industrial<br />

enterprises.<br />

The number of firms in the 2017<br />

ISO 500 that made profits rose<br />

to 422 from 392. ISO has rated<br />

Turkey's top 500 companies since<br />

1968.<br />

16 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

Turkey’s car company due<br />

to initiate operations in<br />

September<br />

Turkey is geared to manufacture<br />

a domestic car company and<br />

brand capable of competing<br />

on the global scale. The CEO of<br />

the newly formed Automobile<br />

Initiative Group, Mehmet Gürcan<br />

Karakaş told that group was ready<br />

to commence with a qualified<br />

team of specialists. Karakaş said<br />

that he had analyzed the financial<br />

and technical aspects of the<br />

indigenous car project.<br />

"Our mission is to carry out<br />

a project of transforming<br />

technology with a qualified team<br />

of experts. We will give it its final<br />

shape after we begin work on<br />

Sept. 1," he said, pointing out<br />

that they are acting with a vision<br />

of a car brand that can compete<br />

with and have a say in the global<br />

market.<br />

The partnership agreement<br />

to launch Turkey's first locally<br />

produced car brand was<br />

signed on May 31, according<br />

to a statement from the partner<br />

companies.<br />

Five local firms with 19 percent<br />

shares each; Anadolu Group,<br />

BMC, Kök Group, Turkcell,<br />

and Zorlu Holding, along with<br />

the Union of Chambers and<br />

Commodity Exchanges of Turkey<br />

(TOBB) with five percent shares,<br />

will jointly lead the firm.<br />

Karakaş, one of the top global<br />

executives in technology giant<br />

Bosch, was officially appointed as<br />

the CEO of the new firm.<br />

His appointment was announced<br />

by President Recep Tayyip<br />

Erdoğan during an interview .<br />

"The indigenous car project's<br />

shareholders' trust, commitment,<br />

and adaptation impressed me,"<br />

said Karakaş.<br />

He said as an engineer who<br />

has committed himself to the<br />

automotive industry he was<br />

excited to bring the experience<br />

he gained abroad to Turkey.<br />

The initiative came after repeated<br />

calls from President Erdoğan for a<br />

joint car project by TOBB and the<br />

Science, Industry and Technology<br />

Ministry.<br />

Last November, President<br />

Erdoğan announced that the<br />

prototype of the first domestically<br />

produced car - expected to be<br />

produced in Ankara - would be<br />

ready in 2019 and would enter<br />

the market by 2021.<br />

"I want to own the first automobile<br />

(produced), provided that I<br />

will pay for it. No one should<br />

hesitate. We will produce Turkey's<br />

car with the best design and<br />

technology, both for our country<br />

and the world," Erdoğan said in<br />

November. The President praised<br />

efforts to ensure that the mass<br />

production of the first domestically<br />

produced automobile would be<br />

either electric or hybrid.<br />

Turkey attempted to produce<br />

its first domestically produced<br />

car the Devrim (Revolution) in<br />

1961, however the attempt was<br />

unsuccessful and production<br />

was halted following the first<br />

prototypes.<br />

18 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

Tesla to set up shop in<br />

Istanbul’s upscale Zorlu Mall<br />

Electric car producer Tesla's CEO,<br />

Elon Musk, announced in February<br />

that the company is planning to<br />

enter the Turkish market this year<br />

and has posted job ads looking<br />

for staff to be employed in Turkey.<br />

Based on the company's job<br />

advertisements, Tesla's Istanbul<br />

store is expected to open in the<br />

city's luxury Zorlu Center mall in<br />

Istanbul's Levazım neighborhood.<br />

Tesla carries out configuration<br />

and order processing for its<br />

automobiles in its stores. Tesla<br />

sales are conducted through an<br />

online platform via pre-order.<br />

After registering on Tesla's official<br />

website and paying $1,000 for<br />

an order number, customers can<br />

generally receive their cars within<br />

12 to 18 months.<br />

Turkish people are now able to<br />

order from Europe and the prices<br />

of a brand-new Tesla car start at<br />

110,00 euros ($128,424). The<br />

price of second-hand Tesla ranges<br />

from 77,000 euros to 100,000<br />

euros.<br />

Tesla Motors Netherlands B.V.,<br />

Tesla's European headquarters,<br />

was previously reported to be<br />

looking for an area to set up<br />

a maintenance center on the<br />

Anatolian side of Istanbul. The<br />

Model 3, starting at $35,000 in<br />

the U.S., was introduced April<br />

1, 2016 and sold with a prepaid<br />

reservation of $1,000. The model<br />

received more than 400 orders<br />

in the first month after its release.<br />

While deliveries have begun in<br />

the U.S., the vehicle will enter<br />

Europe late this year. The Model 3<br />

is expected to go on sale in Turkey<br />

in 2019 at an estimated price of<br />

about TL 326,940 ($69,700), or<br />

70,000 euros.<br />

An agreement signed with Gersan<br />

Electricity Trade and Industry for<br />

fast charging stations is the first<br />

signal of Tesla entering Turkey.<br />

While there are currently more<br />

than 150 Tesla vehicles in Turkey,<br />

the lack of repair services is a big<br />

problem, with owners currently<br />

having to send their vehicles to<br />

Europe for maintenance, coupled<br />

with problems around obtaining<br />

automobile insurance.<br />

Tesla to launch in Turkey<br />

later this year, Musk says<br />

Electric car maker Tesla plans<br />

to launch in Turkey, its chief<br />

executive said.<br />

"Btw, planning to launch Tesla<br />

in Turkey later this year," Elon<br />

Musk said in a post on his Twitter<br />

account.<br />

"Love your country & will be<br />

there in person for the launch,"<br />

he added.<br />

The company produced more<br />

than 300,000 electric vehicles as<br />

of February.<br />

The Model S, its most popular car,<br />

has sold more than 200,000 units<br />

so far and was the world's bestselling<br />

electric vehicle in 2015<br />

and 2016.<br />

The firm released two more<br />

models -- the Model X SUV and<br />

Model 3 sedan -- in September<br />

2015 and <strong>July</strong> 2017, respectively.<br />

Last year, the company also<br />

unveiled its electric truck-the Tesla<br />

Semi.<br />

Turkey had a total of nearly 12.2<br />

million registered cars by the end<br />

of March, according to the most<br />

recent data from the Turkish<br />

Statistical Institute (TUIK).<br />

There were 729,500 new<br />

passenger car registrations in<br />

Turkey last year, according<br />

to the European Automobile<br />

Manufacturers Association,<br />

compared with 15.1 million in the<br />

European Union.<br />

While Turkey is highly dependent<br />

on oil imports, electric cars could<br />

provide some relief for its gasoline<br />

consumption.<br />

There are a few hundred Tesla<br />

owners in Turkey, who order the<br />

cars from abroad.<br />

But the low number of charging<br />

stations and limited services are<br />

some of the biggest hurdles for<br />

the electric vehicle market in the<br />

country, according to experts.<br />

22 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

Turkey’s automotive exports<br />

to Europe reach new heights<br />

The Turkish automotive industry,<br />

which picked up some recent<br />

losses in the domestic market, has<br />

seen a rise in exports – exceeding<br />

$16 billion in the first half of the<br />

year – with more than 80 percent<br />

going to European countries.<br />

According to the <strong>Automotive</strong><br />

Distributors' Association (ODD)<br />

and Turkish Exporters' Association<br />

(TİM), the Turkish automotive and<br />

light commercial vehicle industry<br />

contracted 11.92 percent in the<br />

first half of the year compared to<br />

the previous year. The industry,<br />

however, recorded $16.4 billion<br />

in exports with a 14.5 percent rise<br />

compared to the same period of<br />

last year.<br />

In accordance with these<br />

figures, the automotive exports<br />

constituted 20 percent of Turkey's<br />

total exports in the first half,<br />

which exceeded $80 billion.<br />

Meanwhile in the first half of<br />

2017, automotive exports stood<br />

at $14.3 billion.<br />

The automotive sector's exports<br />

to the European Union and other<br />

European countries in the first<br />

half of the year increased by 15<br />

percent and hit $13.6 billion,<br />

making up 80.5 percent of<br />

Turkey's $16.4 billion automotive<br />

exports in the first half of the year.<br />

Europe was followed by the<br />

Middle East for the Turkish<br />

automotive industry. Car sales<br />

to Middle Eastern countries rose<br />

by 2.2 percent, reaching $805.1<br />

million.<br />

With exports over $2.4 billion,<br />

Germany was the biggest market<br />

for Turkish manufacturers. It was<br />

followed by Italy with $1.8 billion<br />

and France with $1.7 billion. The<br />

U.K. ranked fourth in Turkey's<br />

automotive exports with $1.4<br />

billion. Accordingly, automotive<br />

sales separately to Germany,<br />

Italy, France and the U.K. each<br />

exceeded $1 billion.<br />

In contrast, sales to the U.S.<br />

dropped by $159 million and<br />

stood at $463 million. <strong>Automotive</strong><br />

sales to Iran and Denmark also<br />

fell by $51 million $22 million<br />

respectively while the decrease<br />

in exports to Ireland was at<br />

$19 million. Turkish automotive<br />

industry's exports to Syria also saw<br />

a $15 million fall in the first half of<br />

the year.<br />

In 2017, the total automotive<br />

production increased by 13<br />

percent to 1.7 million compared<br />

to 2016, while automobile<br />

production reached 1.1 million<br />

with an increase of 18 percent,<br />

providing the sector with the<br />

highest levels in both total<br />

automotive and automobile<br />

production, according to<br />

<strong>Automotive</strong> Manufacturers<br />

Association (OSD) data.<br />

With these figures, both total<br />

automotive and automobile<br />

production reached their highest<br />

levels in Turkey.<br />

In 2017, total automotive exports<br />

increased by 17 percent and<br />

automobile exports by 24 percent<br />

compared to the previous year.<br />

In this period, total exports<br />

amounted to 1.3 million units,<br />

followed by automobile exports<br />

with 921,000 units. Thus, 80<br />

percent of the total production<br />

in the automotive industry was<br />

exported.<br />

According to the Turkish<br />

Exporters Assembly (TİM) data,<br />

total automotive industry exports<br />

maintained the leading position<br />

in 2017 with an 18.2 percent<br />

share in exports.<br />

24 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

Trump threatens to slap 20<br />

percent tariff on cars from EU<br />

U.S. President Donald Trump<br />

threatened to impose a 20<br />

percent tariff on all European<br />

Union-assembled cars coming<br />

into the United States, a month<br />

after the administration launched<br />

an investigation into whether<br />

auto imports pose a national<br />

security threat.<br />

"If these Tariffs and Barriers are not<br />

soon broken down and removed,<br />

we will be placing a 20% Tariff<br />

on all of their cars coming into<br />

the U.S. Build them here!" Trump<br />

wrote on Twitter.<br />

Autos stocks fell on the news. The<br />

European Autos Stocks Index fell<br />

sharply after Trump's 20 percent<br />

tariff tweet and was last down<br />

1.25 percent. Ford Motor Co<br />

shares went into the red and<br />

were down 0.5 percent, while<br />

General Motors Co shares were<br />

off 0.3 percent.<br />

The U.S. Commerce Department<br />

is investigating whether imports<br />

of automobiles and auto parts<br />

pose a risk to national security.<br />

The deadline for completing the<br />

investigation is February, 2019,<br />

but Commerce Secretary Wilbur<br />

Ross said the department aims to<br />

wrap up the probe much earlier.<br />

At a meeting with automakers<br />

at the White House on May 11,<br />

Trump told automakers he was<br />

planning to impose tariffs of 20<br />

or 25 percent on some imported<br />

vehicles and sharply criticized<br />

Germany's automotive trade<br />

surplus with the United States.<br />

The United States currently<br />

imposes a 2.5 percent tariff on<br />

imported passenger cars from the<br />

European Union and a 25 percent<br />

tariff on imported pickup trucks.<br />

The EU imposes a 10 percent tariff<br />

on imported U.S. cars.<br />

The tariff proposal has drawn sharp<br />

condemnation from Republican<br />

lawmakers and business groups.<br />

A group representing major U.S.<br />

and foreign automakers has said<br />

it was "confident that vehicle<br />

imports do not pose a national<br />

security risk."<br />

The U.S. Chamber of Commerce<br />

noted that American auto<br />

production has doubled over<br />

the past decade, and said tariffs<br />

"would deal a staggering blow<br />

to the very industry it purports to<br />

protect and would threaten to<br />

ignite a global trade war."<br />

German automakers Volkswagen<br />

AG, Daimler AG and BMW AG<br />

build vehicles at plants in the<br />

United States. BMW is one of South<br />

Carolina's largest employers, with<br />

more than 9,000 workers in the<br />

state.<br />

The United States in 2017<br />

accounted for about 15 percent<br />

of worldwide Mercedes-Benz and<br />

BMW brand sales. It accounts for<br />

5 percent of VW brand sales and<br />

12 percent of Audi sales.<br />

28 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

Ford, Volkswagen explore<br />

strategic alliance<br />

Ford and Volkswagen are<br />

exploring joint development of<br />

future commercial vehicles in a<br />

possible alliance that could lead<br />

to cooperation in other areas.<br />

The companies announced the<br />

collaboration in a statement. They<br />

said that any alliance would not<br />

involve cross ownership stakes<br />

or including stock, according<br />

to Associated Press (AP). VW<br />

and Ford say an alliance would<br />

strengthen each company's<br />

competitiveness and better serve<br />

global customers. Ford would not<br />

give specifics about other areas for<br />

collaboration. But Ford President<br />

of Global Markets Jim Farley<br />

says in the statement that Ford<br />

is trying to become more fit as a<br />

business while winning a global<br />

product portfolio. Automakers<br />

often collaborate on big-ticket<br />

projects. For example, Ford has<br />

joined with General Motors to<br />

develop automatic transmissions.<br />

The companies say they'll provide<br />

updates as talks progress.<br />

Meanwhile, Ford - one of<br />

America's "Big Three" automakers<br />

- bought the Michigan Central<br />

Station building, a Beaux Arts<br />

gem opened in 1913 that has<br />

stood abandoned and decaying<br />

for three decades, to make it the<br />

centerpiece of a new urban hightech<br />

campus, according to AFP.<br />

Bill Ford Jr., the great-grandson of<br />

the American carmaker's founder,<br />

stood in front of thousands in<br />

Detroit, with an abandoned<br />

train station in the background,<br />

and entwined the company's<br />

future with that of the dilapidated<br />

building behind him.<br />

"This station is a symbol," Ford<br />

declared. "We're making a big bet<br />

on our future."<br />

The once proud building has<br />

faded, but is poised for much<br />

the same renewal that Detroit<br />

residents and businesses hope<br />

will mark the Motor City's postrecession,<br />

post-bankruptcy<br />

renaissance. At an event, the<br />

Ford Motor Company unveiled<br />

its lofty plans: a space of 1.2<br />

million square feet (111,500<br />

square meters) spanning several<br />

city blocks, where the company's<br />

employees, and those of partner<br />

firms and startups, will work on<br />

innovations such as autonomous<br />

driving and electrification.<br />

"Just as Detroit has had to<br />

reimagine what it's going to be,<br />

we have to do the same, because<br />

everything is changing," Ford<br />

said.<br />

Ford hopes to open the<br />

redeveloped train station in three<br />

to four years and make it a "magnet<br />

for high-tech talent," according<br />

to a company statement. Part of<br />

the company's gamble is that, by<br />

moving its innovations divisions<br />

into Detroit's urban core, Ford<br />

can attract the technologysavvy<br />

millennials it needs. The<br />

company's main headquarters<br />

will remain in nearby suburban<br />

Dearborn.<br />

The train station project is a<br />

matter of survival for Ford, which<br />

has fallen behind its Detroit rivals<br />

GM and Fiat Chrysler (FCA) in<br />

developing self-driving cars.<br />

GM plans to mass-produce<br />

autonomous cars by 2019,<br />

and FCA has an expanding<br />

partnership with Google parent<br />

Alphabet's Waymo autonomous<br />

car division. But Ford won't<br />

have an autonomous car for<br />

consumers until 2021 - a full two<br />

years after GM.<br />

32 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

Assan Hanil looks to acquire<br />

European firm to expand market<br />

Turkish automotive equipment<br />

manufacturer, Assan Hanil is<br />

looking to acquire a European<br />

firm over the next year as it plans<br />

to expand its global presence,<br />

company General Manager<br />

Atacan Güner said.<br />

The company, a subsidiary of<br />

Kibar Holding, recently organized<br />

a Technology Day Event. The<br />

event showcased Assan Hanil's<br />

research and development (R&D)<br />

investments in autonomous<br />

driving and other products that<br />

use state-of-the-art technology<br />

that offer special solutions to its<br />

customers.<br />

The event also shared the<br />

company's production, R&D<br />

and middle term investment<br />

plans related to seat systems,<br />

electronic components, interior<br />

and exterior trim components,<br />

electronic components and seat<br />

mechanisms.<br />

On acquiring a company in<br />

Europe, Güner said that doing so<br />

will add to Assan Hanil's existing<br />

product range. They also want to<br />

increase the turnover potential for<br />

customers there.<br />

In a media statement about<br />

the three-day event and the<br />

company's future investments,<br />

Güner said that driverless and<br />

electric vehicle technologies<br />

will shape the future of the<br />

automotive sector. He added<br />

that the most important players<br />

in the automotive sector have<br />

all increased investment in this<br />

technology.<br />

He also noted that they have<br />

already started necessary<br />

infrastructure studies. "We are<br />

investing in the future. We have<br />

decided to invest in Turkey<br />

in electronic parts and seat<br />

mechanisms," Güner said.<br />

"Product technologies for electric<br />

and autonomous vehicles do<br />

not yet exist in Turkey. With<br />

these products, we will transfer<br />

the production technologies to<br />

Turkey," he said.<br />

Güner highlighted that they<br />

became independent producers<br />

through significant R&D activities.<br />

"We focus on technologies like<br />

vehicle electronics and seat<br />

mechanisms that were not<br />

available in Turkey and mostly<br />

imported by all major industries<br />

requiring imports of up to 400-<br />

450 million euros," he said.<br />

He added that they would like<br />

to bring these technologies to<br />

the country through their South<br />

Korean partner Seoyon Group.<br />

"With the f inancial and technical<br />

support of Kibar Holding and<br />

Seoyon Group, we hope to<br />

reach our goals. We want to hit<br />

a turnover of 1 billion euros by<br />

2025-2026 and are looking at a<br />

fourfold growth over the next five<br />

or six years," Güner continued. "At<br />

the moment we have a turnover<br />

of 220 million euros. We are a<br />

major automotive sub-industry.<br />

We manufacture products right<br />

next to the customer, making the<br />

delivery process easier."<br />

Kibar Holding CEO Haluk Kayabaşı<br />

said Assan Hanil is a major supplier<br />

for the automotive sector and an<br />

industry leader thanks to its R&D<br />

activities.<br />

He added that Assan Hanil<br />

increased thae number of its R&D<br />

employees by 35 percent ian the<br />

last two years and has achieved<br />

significant success.<br />

Kayabaşı stressed that Assan Hanil<br />

was on its way to becoming a<br />

global brand thanks to its hi-tech<br />

automotive seats. It is also the first<br />

and only Turkish company that<br />

manufactures aircraft seats, in<br />

partnership with Turkish Airlines<br />

(THY).<br />

He also pointed out that the<br />

company is approved by giants<br />

like Airbus and Boeing, making<br />

aircraft seats that they developed<br />

independently at their R&D<br />

center.<br />

Kayabaşı explained that they<br />

made significant contributions<br />

to the country's economy by<br />

reducing aircraft seat imports.<br />

He said that they took their expertise<br />

in car seat manufacturing and<br />

expanded into other industries.<br />

The Kibar Holding CEO said that<br />

they developed an air suspension<br />

driver and passenger seat for<br />

buses and trucks, becoming one<br />

of only five companies in the<br />

world developing and making<br />

such products.<br />

"I believe that the agreement we<br />

have with Ford Otosan on ASD<br />

will further advance our current<br />

know-how. We have flexible<br />

production capabilities that<br />

can be positioned close to our<br />

customers' locations," he noted.<br />

"We are planning to invest 40<br />

million euros in the mid-term<br />

in ASD and set up a production<br />

facility in Europe. Feasibility<br />

studies are already underway. In<br />

ASDs, we want to raise our global<br />

market share to 15 percent in the<br />

middle term," Kayabaşı said<br />

34 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

American Varroc Lighting acquires<br />

Turkish automotive firm<br />

Exterior vehicle lighting specialist<br />

U.S.-based Varroc Lighting Sytems<br />

has acquired Istanbul-based<br />

Sa-ba <strong>Automotive</strong>, a statement<br />

confirmed.<br />

"Through Sa-ba <strong>Automotive</strong>,<br />

Varroc Lighting gains valuable<br />

manufacturing and production<br />

capacity with a 10,000-squaremeter<br />

manufacturing and<br />

technology center near<br />

Istanbul, and a new plant under<br />

construction in Dimitrovgrad,<br />

Bulgaria," the statement said.<br />

The terms and conditions of the<br />

acquisition, however, were not<br />

disclosed.<br />

It also noted that the<br />

20,000-square-meter Bulgaria<br />

plant will give Varroc Lighting<br />

expanded and scalable<br />

production capacity for its<br />

European customers.<br />

"This acquisition further<br />

underscores our commitment to<br />

a global footprint that provides<br />

our customers with cost-effective<br />

and high-quality lighting products<br />

and technology," said Stephane<br />

Vedie, president and CEO of<br />

Varroc Lighting Systems.<br />

"Turkey is a growing market,<br />

and our presence there helps<br />

us expand the services we<br />

can provide to our growing<br />

customer base, while substantially<br />

increasing our capabilities in small<br />

lighting."<br />

In the statement, Varroc Lighting<br />

said that the acquisition was the<br />

sixth business initiative in the past<br />

16 months that directly support<br />

the expansion of its global product<br />

portfolio and manufacturing and<br />

engineering footprint.<br />

It also noted its manufacturing and<br />

product development facilities<br />

based in Morocco, Brazil, Japan,<br />

and Poland. It recently opened an<br />

expanded Lighting Development<br />

Center in Ostrava, Czech Republic<br />

while expanding manufacturing<br />

capabilities in Vietnam.<br />

With the acquisition of the<br />

Istanbul-based company, Varroc<br />

Lighting now has a global<br />

presence in 17 countries across<br />

five continents.<br />

Auto market aims over $30B for<br />

exports in <strong>2018</strong><br />

Turkey's automotive industry<br />

exports will exceed $30 billion<br />

in <strong>2018</strong>, the CEO of the Uludağ<br />

<strong>Automotive</strong> Industry Exporters'<br />

Association (OİB) said.<br />

"We had aimed for $29 billion [of<br />

exports] in <strong>2018</strong>. If we look at the<br />

data for the first half of the year,<br />

we reached an export level of<br />

$16.4 billion.<br />

"This shows us that we will exceed<br />

far beyond our aim. We will<br />

exceed over $30 billion," Baran<br />

Çelik said.<br />

Çelik said $16.4 billion of exports<br />

in <strong>2018</strong> were an "all-time record"<br />

for the first half of a year.<br />

He said Turkish automotive<br />

sector's exports reached $28.5<br />

billion in 2017, adding that the<br />

sector will break a record in <strong>2018</strong>.<br />

According to the Turkish Exporters'<br />

Assembly (TİM), automotive was<br />

the leading sector with $2.5<br />

billion exports in June. The sector's<br />

exports increased by 1.9 percent<br />

compared to the same month the<br />

previous year.<br />

36 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

Flexible period started with<br />

GarentaFlex<br />

Anadolu Group provides<br />

a great opportunity for<br />

long term car hire<br />

Garenta, which has attracted<br />

attention with its innovative works<br />

in the car rental sector, offers<br />

"GarentaFlex" rental option with<br />

the opportunity to return longterm<br />

car lessors the time they wish<br />

to lease without the commitment<br />

limit.<br />

Garenta, which provides car<br />

rental service in the Anadolu<br />

Group, is giving different<br />

experiences to its customers while<br />

giving direction to the sector with<br />

its new applications.<br />

Garenta's new application<br />

"GarentaFlex" offers great freedom<br />

to long-term vehicle lessors. Those<br />

who prefer GarentaFlex for a long<br />

term car rental will be able to<br />

return it at any time if they want<br />

to rent a vehicle with a minimum<br />

of 3 months car rental. Those who<br />

want to return their vehicles after<br />

the first 3 months; instead of the<br />

entire rental price, they can only<br />

carry out the refund by paying 2<br />

rents. It's enough to be informed<br />

only 1 month in advance.<br />

38 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

<strong>Automotive</strong> Industry should<br />

gear towards these 4 trends<br />

Technavio just released its analysis<br />

on the automotive industry. They<br />

say that companies should better<br />

stick to four emerging trends<br />

if they want to see a positive<br />

outlook for up to 2020. Here are<br />

the so-called trends according to<br />

Technavio analysts:<br />

• HDC combined with GPSassisted<br />

cruise control.<br />

Luxury cars are already using<br />

these but the other providers<br />

could also benefit from it. This can<br />

improve fuel efficiency in vehicles<br />

as well as control the vehicle’s<br />

descent for downhill paths. With<br />

the GPS in place, it will make it<br />

easier for the driver to see what’s<br />

up ahead.<br />

• Terrain profiling system.<br />

Jaguar has already found a way<br />

for their cars to identify the surface<br />

of the route being travelled.<br />

This technology is coupled with<br />

3D path sensing. Both of these<br />

systems can be used to automate<br />

the settings of the car based on its<br />

current environment, no longer<br />

needing manual intervention<br />

from the driver. The technology<br />

will be really helpful for drivers that<br />

often need to travel in locations<br />

that experience rains and have<br />

terrains that are challenging to<br />

navigate.<br />

• Shifting to the use of<br />

regenerative braking system.<br />

Regular braking systems have<br />

been proven to waste a lot of<br />

energy that could have been<br />

used to power up the car itself. In<br />

comparison, regenerative braking<br />

systems offer longer battery life for<br />

the car because the energy that<br />

is often lost on regular braking<br />

systems is instead stored back in<br />

the battery. These are often used<br />

by electrical cars but just imagine<br />

the energy saved by using them<br />

too on conventional cars.<br />

• Connected all-terrain driving<br />

systems.<br />

It is now possible to have vehicleto-vehicle<br />

communications,<br />

thanks to the help of dedicated<br />

short-range communications<br />

(DSRC) technology. However, the<br />

technology is limited because of<br />

compatibility issues. There is now<br />

a movement where governments<br />

and the academia are proposing<br />

the standardization of such types<br />

of transportation systems. The<br />

automotive industry should watch<br />

out for its arrival.<br />

40 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

25 th Automechanika Frankfurt<br />

<strong>2018</strong> to host of new themes<br />

and REIFEN as a co-located<br />

show in September<br />

Approx. 133,000 trade visitors<br />

from 170 countries came to<br />

the last event to see the latest<br />

developments on offer from<br />

4,843 exhibitors<br />

Automechanika Frankfurt is the<br />

world's leading trade fair for the<br />

automotive service industry. In<br />

<strong>2018</strong> the biennial trade fair will be<br />

celebrating its 25th anniversary<br />

with a host of new themes and<br />

REIFEN as a co-located show.<br />

Automechanika Frankfurt is the<br />

most important trade fair for<br />

the automotive aftermarket and<br />

has been organised by Messe<br />

Frankfurt since 1971. Approx.<br />

133,000 trade visitors from 170<br />

countries came to the last event<br />

to see the latest developments on<br />

offer from 4,843 exhibitors.<br />

The trade fair takes place every<br />

two years, alternating with the<br />

IAA, and will be celebrating its<br />

25th anniversary in <strong>2018</strong>. The<br />

25th Automechanika Frankfurt<br />

from 11 to 15 September <strong>2018</strong><br />

will include new themes such as<br />

Classic Cars and REIFEN, which<br />

will be held simultaneously in the<br />

new Hall 12 as a co-located show<br />

for the first time.<br />

Automechanika: At home<br />

worldwide<br />

With 16 events in 15 countries,<br />

Automechanika is the world's<br />

most successful B2B trade fair<br />

brand. The brand represents<br />

some 20,000 exhibitors and<br />

600,000 trade visitors, and in<br />

<strong>2018</strong> two new shows are making<br />

their debuts in Riyadh and<br />

Atlanta. Furthermore, the biennial<br />

Automechanika Frankfurt event is<br />

taking place for the 25th time this<br />

year.<br />

New at Automechanika Frankfurt<br />

Having previously been held in<br />

Essen, the REIFEN trade fair is<br />

now taking place for the first time<br />

co-located with Automechanika<br />

Frankfurt in Hall 12. Visit this trade<br />

fair duo from 11 to 15.09.<strong>2018</strong> in<br />

Frankfurt am Main.<br />

Two trade fairs, one date<br />

Just as tires and the car belong<br />

together, so does the REIFEN<br />

trade fair now also have a<br />

permanent home alongside<br />

Automechanika Frankfurt. For its<br />

25th anniversary Automechanika<br />

is extending the range of themes<br />

it covers, bringing together the<br />

automotive market and the tire<br />

industry.<br />

As a visitor your ticket gives you<br />

entry to both trade fairs. You will<br />

find REIFEN in Hall 12, the newest<br />

hall on the Frankfurt trade fair<br />

site, which comes on line on time<br />

in September <strong>2018</strong>.<br />

Automechanika and REIFEN are<br />

a perfect fit with more and more<br />

tire dealers offering automotive<br />

services, whilst car dealers extend<br />

the range of tires they offer.<br />

42 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

How E-Commerce Is Driving<br />

The Auto Industry<br />

The automobile industry has seen<br />

some major changes over the<br />

past decade, thanks in large part<br />

to the rise of social media and the<br />

internet<br />

If you aren't already leveraging<br />

everything e-commerce can<br />

offer the automotive industry in<br />

the Amazon Prime era, it’s vital<br />

that you understand how it’s<br />

changing traditional marketing.<br />

Integrating physical and online<br />

shopping experiences is critical,<br />

especially now that consumers<br />

are making more purchasing<br />

decisions online.<br />

Millennials are taking over as<br />

consumers<br />

By 2020, 40% of the automotive<br />

market will be made up of<br />

millennials. Their buying power<br />

will gain even more influence as<br />

that of other generations wanes.<br />

In short, millennials aren’t just<br />

buying cars. They’ll soon make up<br />

the majority of car buyers.<br />

Facebook has become an<br />

essential tool to connect with the<br />

market<br />

When a friend contemplated<br />

her next minivan, she asked<br />

her Facebook network for<br />

suggestions: “Honda Odyssey or<br />

Toyota Sienna?”<br />

Given their familiarity and comfort<br />

with technology, it should come<br />

as no surprise that millennials<br />

are making the most of what the<br />

internet has to offer – especially<br />

Facebook – before deciding<br />

what to buy. Of course, this isn’t<br />

unique to millennials. More and<br />

more people are using Facebook.<br />

News broke last summer that the<br />

social media platform was seeing<br />

two billion users every single<br />

month.<br />

Despite its privacy woes, Facebook<br />

now accounts for 14% of the total<br />

time people spend online, which<br />

helps explain why it is the most<br />

popular social media platform<br />

by far. And, although millennials<br />

clearly love Facebook, it also<br />

serves the most representative<br />

cross-section of the population,<br />

something that can’t be said<br />

for other platforms like Twitter,<br />

Snapchat and Instagram.<br />

What does the future of<br />

e-commerce look like for the auto<br />

industry?<br />

Going forward, it will be harder<br />

and harder for the auto industry<br />

to succeed without focusing on<br />

the growing buying power of<br />

millennials. This includes how<br />

they want to shop. For the most<br />

part, millennials spend a large<br />

percentage of their internet<br />

time on social channels and<br />

need to be engaged more than<br />

once as they go through their<br />

buyer’s journey. Therefore, auto<br />

companies that understand how<br />

to use available platforms, like<br />

Google Shopping, Facebook<br />

and dynamic remarketing, will<br />

thrive in the years ahead. Those<br />

that don’t may not survive to see<br />

them.<br />

50 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

How green are electric cars?<br />

The motor industry had argued<br />

that the 2040 targets were<br />

contributing to consumer fears<br />

over diesel cars, whose UK sales<br />

have slumped in the last 15<br />

months. Mike Hawes, the chief<br />

executive of the Society of Motor<br />

Manufacturers and Traders, said<br />

the strategy recognised “the<br />

vital role conventional engines,<br />

including diesel, will continue to<br />

play in the transition to 2040 and<br />

beyond”.<br />

He said the industry welcomed the<br />

“technology neutral approach”<br />

and the news that hybrids would<br />

not be banned but remained<br />

concerned over 2030 targets for<br />

ultra-low emission vehicles. “We<br />

need realistic ambition levels and<br />

measures that support industry’s<br />

efforts, allow manufacturers<br />

time to invest, innovate and sell<br />

competitively, and provide the<br />

right incentives and infrastructure<br />

to take the consumer with us,” he<br />

said.<br />

However, drivers’ appetite for<br />

diesel cars continues to wane<br />

in the face of environmental<br />

and tax concerns, despite the<br />

industry maintaining on Tuesday<br />

that for many drivers they are the<br />

“right choice economically and<br />

environmentally”.<br />

Diesel registrations plunged by<br />

nearly a quarter, to 62,260. The<br />

market share of diesels this year<br />

so far stands at 32.8%, compared<br />

with 44.1% in 2017.<br />

Total new car sales growth was<br />

modest, said the Society of Motor<br />

Manufacturers and Traders.<br />

The trade body notedthere had<br />

been an 8.5% decline in the<br />

previous May as sales were hit by<br />

vehicle excise duty changes and<br />

uncertainty ahead of the general<br />

election. So far this year, total<br />

sales are down by 6.8%.<br />

52 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

Hybrid cars to be exempt from<br />

2040 petrol and diesel ban<br />

Move angers environmental<br />

campaigners but is welcomed by<br />

automotive industry<br />

Petrol and diesel hybrid cars will still be permitted to be sold in 2040, the<br />

government has conceded, in a move that has angered environmental<br />

campaigners but was welcomed by the car industry.<br />

Ministers last year pledged to<br />

ban new cars powered by fossil<br />

fuels by 2040 but the transport<br />

secretary, Chris Grayling,<br />

confirmed on Monday that hybrid<br />

cars – powered by electricity<br />

and diesel or petrol – would be<br />

exempt.<br />

The government’s Road to Zero<br />

strategy to reduce car pollution<br />

now includes a further target<br />

for at least 50% of new cars to<br />

be ultra-low emission by 2030.<br />

However, it stops short of outright<br />

commitments for the decades<br />

ahead, saying it expects “all new<br />

cars and vans to have significant<br />

zero-emission capability” by 2040<br />

and “almost every” car and van to<br />

be zero-emission by 2050.<br />

Grayling said he believed the<br />

best method was to influence car<br />

buyers: “I want it to be easier for<br />

electric vehicle drivers to recharge<br />

than for motorists to visit a filling<br />

station. I want them to choose<br />

electric cars because they are so<br />

convenient.” He said a delayed<br />

£400m charging fund would be<br />

launched this summer to help<br />

expand infrastructure across<br />

the country, with hundreds of<br />

thousands more charging points<br />

on streets, in new homes and in<br />

workplaces.<br />

He said that as well as reducing<br />

pollution, the strategy set out a<br />

clear path for Britain to be a world<br />

leader in zero-emission transport,<br />

which represented “a huge<br />

global opportunity for industry<br />

and business” worth £1tn a year<br />

by 2030.<br />

However, environmental groups<br />

accused the government of<br />

weakening its commitments.<br />

Greenpeace said the car industry<br />

was “yet again being given a free<br />

pass” and the targets were weak<br />

by international standards. The<br />

Campaign for Better Transport said<br />

it was disappointing, describing<br />

it as “a step backwards, giving<br />

concessions to keeping hybrids<br />

on the road, which will water<br />

down the already inadequate<br />

2040 target”.<br />

56 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

Reinventing the Wheel: New<br />

Innovations in <strong>Automotive</strong><br />

Tire Technology<br />

The system checks road conditions to distinguish among dry, wet, slush,<br />

fresh snow or ice, and sends that real-time information to the driver via a<br />

digital screen<br />

Tire technology may not grab<br />

headlines like other car technology<br />

but tires have a dramatic effect<br />

on how your car operates. As<br />

the only thing between your car<br />

and the road, tires are one of the<br />

most important components in a<br />

vehicle’s performance and safety.<br />

At first glance, the tires of 50 years<br />

ago look a lot like today’s. Radial<br />

tires became popular in the U.S.<br />

in the 1960s and are still in use<br />

now. But a lot is happening in the<br />

world of tire technology because<br />

innovations spurred by customer<br />

demand and regulations for<br />

greater fuel economy filter down<br />

to tire makers.<br />

Tires are part of a push to<br />

use technology to increase<br />

car safety. A system known<br />

as “Contact Area Information<br />

Sensing,” or CAIS, includes a<br />

sensor attached to the interior<br />

wall of the tire that monitors how<br />

it interacts with the road’s surface.<br />

The system checks road conditions<br />

to distinguish among dry, wet,<br />

slush, fresh snow or ice, and<br />

sends that real-time information<br />

to the driver via a digital screen.<br />

Tire manufacturers are also<br />

looking to take CAIS technology<br />

a step further by enabling it to<br />

share information with other<br />

vehicles similarly wired, which<br />

would allow your car to anticipate<br />

actions from the car in front.<br />

CAIS may eventually provide<br />

58 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

information on tread wear and<br />

work with air pressure sensors to<br />

communicate air pressure data.<br />

Low tire pressure is bad for your<br />

tires and your gas mileage, but<br />

many drivers fail to keep tires<br />

properly inflated. A potential<br />

remedy would be self-inflating<br />

tires, which use sensors to<br />

measure tire pressure and<br />

automatically add or decrease air<br />

if the pressure is too high or low.<br />

This technology is being used in<br />

heavy machinery and military<br />

vehicles, and may be coming<br />

soon to passenger cars, including<br />

a low-tech version with just two<br />

parts.<br />

“The tire has a ring with a little valve<br />

in it,” explains Marvin Bozarth,<br />

senior technical consultant for<br />

the Tire Industry Association, “and<br />

when the tire rolls, it squeezes<br />

that ring and maintains the air.”<br />

Bozarth said tires lose about two<br />

pounds of pressure a month from<br />

normal use, and the new systems<br />

would automatically make up<br />

that air loss.<br />

Perhaps the lowest-tech<br />

development in tires could have<br />

the greatest impact on driver<br />

safety. The “discolor tire” starts<br />

out looking like every other black<br />

tire, but when the tread wears<br />

down to a minimum safety level<br />

its surface turns a bright orange.<br />

Baked into the tread during the<br />

manufacturing process, the color<br />

lets you know when it’s time to<br />

replace your tires.<br />

“Eco-friendly” is a word not<br />

typically associated with tires, but<br />

sustainable alternatives to rubber<br />

may soon take the lead in tire<br />

production. Guayule ─ a desert<br />

shrub found in the southwestern<br />

U.S. ─ has been used to a limited<br />

degree in rubber production<br />

for over a century. But it could<br />

play a more prominent role if<br />

researchers can find ways to<br />

improve its resistance to cracking<br />

and heat buildup.<br />

Likewise, “They’re also<br />

experimenting with Russian<br />

dandelion roots, which represents<br />

material just like a rubber tree,”<br />

Bozarth says.<br />

Dandelion roots are much<br />

easier to harvest than rubber<br />

from trees and are better for the<br />

environment. “But they’re also<br />

looking for alternatives for rubber,<br />

because you can get a situation<br />

where rubber trees get diseased,”<br />

Bozarth adds.<br />

Easily the most visually striking<br />

trend to emerge of late is<br />

the airless tire. Impervious to<br />

punctures, airless tires have an<br />

outer tread supported by flexible<br />

polyurethane spokes that absorb<br />

the force of the road. They use less<br />

rubber, potentially last up to three<br />

times longer than traditional tires,<br />

and have high lateral strength<br />

and resistance to hydroplaning.<br />

Besides being more eco-friendly,<br />

they’re also more easily recycled.<br />

The downside of airless tires is a<br />

rougher ride at higher speeds.<br />

But tire makers are working on<br />

designs that offer a quality of ride<br />

similar to standard tires.<br />

60 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

Explore the last day<br />

tomorrow at the bustling<br />

Automechanika Shanghai<br />

Asia’s largest trade fair for automotive parts, accessories, equipment<br />

and services, Automechanika Shanghai to be held in 28 November – 1<br />

December <strong>2018</strong>, Shanghai<br />

This year’s edition of<br />

Automechanika Shanghai is<br />

already halfway through, but<br />

more exciting activities are yet to<br />

come. Come along to experience<br />

the Asia’s largest trade fair for<br />

automotive parts, accessories,<br />

equipment and services.<br />

The 3rd Summit: Merger and<br />

Acquisition Strategies for Chinese<br />

<strong>Automotive</strong> is held today to<br />

discuss the strategic opportunities<br />

for China auto and auto parts<br />

enterprises under the national<br />

"One Belt and One Road" initiative.<br />

Visitors are able to enagage<br />

with plenty of activities such as<br />

demonstrations, open forums,<br />

new product presentations as<br />

well as interactive activities with<br />

exhibitors across the fairground.<br />

62 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

The REIFEN zone gathers<br />

renowned companies and brands<br />

including Active Tools, Linglong,<br />

Fangxing Tyre, Guizhou Tyre, and<br />

many more to showcase their tyre<br />

products with latest designs and<br />

materials using in passenger car,<br />

commerical vehicles as well as in<br />

industry at the zone.<br />

With Automechanika Shanghai’s<br />

concurrent fringe programme,<br />

visitors can enjoy a series of hot<br />

topics from across the entire<br />

supply chain through lectures,<br />

seminars and forums. Over<br />

50scheduled events will see a<br />

collection of high profile speakers<br />

discuss global market trends,<br />

latest technological advances,<br />

and future outlooks for various<br />

automotive industry sectors.<br />

Expectations for this year’s edition<br />

of Automechanika Shanghai are<br />

naturally high following last year’s<br />

record breaking show, hailed as<br />

the most successful in its history.<br />

Continuing to serve as Asia’s<br />

largest trade fair for automotive<br />

parts, accessories, equipment<br />

and services, year upon year the<br />

event manages to excel in terms<br />

of not only size and scale, but<br />

also with participant experience<br />

and product offerings. The<br />

upcoming <strong>2018</strong> edition is of<br />

course no exception. The show is<br />

scheduled to take place from 28<br />

November to 1 December at the<br />

NECC in Shanghai, and the entire<br />

automotive world is preparing<br />

for what is undoubtedly one of<br />

the most important dates on the<br />

industry’s calendar.<br />

66 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

Statistics & Facts on the<br />

Global <strong>Automotive</strong> Industry<br />

The global market for autonomous driving hardware components is<br />

expected to grow from 400 million U.S. dollars in 2015 to 40 billion U.S.<br />

dollars in 2030<br />

Global sales of passenger cars are<br />

forecast to hit 78.6 million vehicles<br />

in 2017. Along with China, the<br />

United States is counted among<br />

the largest automobile markets<br />

worldwide, both in terms of<br />

production and sales. About 6.9<br />

million passenger cars were sold<br />

to U.S. customers in 2016, and<br />

around four million cars were<br />

produced here in the same year.<br />

The United States became a key<br />

automotive market in the early<br />

1900s, when Ford introduced<br />

assembly line car production to<br />

mass-manufacture its Model T.<br />

Today, the Ford Motor Company<br />

still ranks among the leading<br />

manufacturers of passenger cars,<br />

its most popular passenger car<br />

model currently being the Ford<br />

Focus, which was also one of<br />

2016’s best selling light vehicles<br />

worldwide. In terms of revenue,<br />

Toyota, Volkswagen, and<br />

Daimler topped the list of major<br />

automobile makers in 2016, while<br />

the automotive supplier industry<br />

was dominated by Bosch,<br />

Continental, Denso and Magna.<br />

Prompted by global initiatives,<br />

such as the Paris Agreement,<br />

several countries around the<br />

globe are enacting stricter<br />

emissions controls on new vehicle<br />

models. As such, automakers<br />

are beginning to expand their<br />

business into the electric mobility<br />

sector. Germany is expected<br />

to lead the way with projected<br />

electric car production to reach<br />

some 1.3 million units by 2021.<br />

Over the next decade, Internetconnected<br />

car technologies and<br />

autonomous vehicles are set to stir<br />

up yet another revolution in the<br />

automotive sector. In 2016, some<br />

40 percent of U.S. respondents<br />

stated that they were willing to<br />

use fully autonomous vehicles,<br />

presumably because they<br />

consider autonomous vehicles<br />

to be safer than conventional<br />

cars. The global market for<br />

autonomous driving hardware<br />

components is expected to grow<br />

from 400 million U.S. dollars in<br />

68 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

2015 to 40 billion U.S. dollars in<br />

2030.<br />

Today’s world is unimaginable<br />

without automobiles. They are<br />

especially essential to the working<br />

population. Automobiles are<br />

complex, sophisticated machines<br />

which require regular mechanical<br />

and electrical service, replacement<br />

parts, paint, cleaning, stereo<br />

system installations and more.<br />

The automotive aftermarket<br />

provides these parts and services,<br />

and largely flourishes during<br />

economic uncertainty. After the<br />

economic crisis in 2008, which<br />

largely affected the automobile<br />

market, the return of stability has<br />

seen decline of car sales. With the<br />

return of economic stability after<br />

crisis in 2008, the car sales have<br />

been increasing as well - but the<br />

aftermarket remains strong. One<br />

thing is for sure, the car industry<br />

is facing challenging times.<br />

70 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

Big SUVs Register The Most<br />

Miles Driven, Despite Poor<br />

Fuel Economy<br />

The full-size Chevrolet Suburban is the “most driven” vehicle in the U.S.<br />

according to a recent study, racking up an average 14,299 miles per year<br />

Despite suffering from fuel<br />

economy that’s rated as low as a<br />

paltry 15/22 mpg city/highway<br />

(and with real world mileage<br />

likely to be even less-frugal) the<br />

full-size Chevrolet Suburban<br />

sport-utility vehicle was found<br />

to be the vehicle that racks up<br />

the most miles in the U.S. on an<br />

annual basis. Suburban owners<br />

register an average 14,299 miles<br />

per year, which is 25.1% above<br />

the norm for all vehicles at 11,518<br />

miles, and that’s for one of the<br />

largest “light duty” vehicles in<br />

production.<br />

In fact, among the 10 “most<br />

driven” models, all but one – the<br />

family favorite Honda Odyssey<br />

minivan – are SUVs, with seven of<br />

them being full-size behemoths,<br />

and most coming from domestic<br />

automakers. That’s according<br />

to an analysis of more than<br />

74 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

1.7 million sales of 10-year-old<br />

models that changed hands from<br />

2014 to 2017, conducted by<br />

our friends at the used-vehicle<br />

website iSeeCars.com.<br />

No surprises here, as the biggest<br />

rides on the road are often<br />

owned by large families and see<br />

extensive duty dropping off kids<br />

here, there, and everywhere<br />

on most days. With burly<br />

towing capacities, they're used<br />

to pull boats or trailers off to<br />

distant lakes or campsites, and<br />

are ideal venues in which to<br />

take long road trips. They’re also<br />

commonly used for livery and<br />

commercial purposes, which<br />

tends to pile on the miles. And it’s<br />

no coincidence that eight of the<br />

top 10 models on the most-driven<br />

list are also among the vehicles<br />

that are most likely to exceed<br />

200,000 miles.<br />

“The vehicles with the highest<br />

annual mileage tend to also be<br />

the vehicles that last the longest,”<br />

explains iSeeCars CEO Phong Ly.<br />

“People who drive their cars the<br />

most are likely to prolong the<br />

lives of their vehicles with regular<br />

service and maintenance because<br />

these vehicles may be a large part<br />

of their livelihood.”<br />

At the other end of the spectrum,<br />

the least driven vehicles in the<br />

U.S. – again no shocker – are racy<br />

sport coupes and convertibles<br />

that spend most of their days<br />

sheltered in a garage. The<br />

Chevrolet Corvette Convertible is<br />

the model most likely to only see<br />

service on an ideal afternoon,<br />

with the average open-air ‘Vette<br />

being driven a mere 4,365 miles<br />

per year, which is 61.8% below<br />

average. The closed-roof version<br />

comes in fourth on the leastdriven<br />

list.<br />

Among passenger cars, owners<br />

tend to put the most miles on the<br />

midsize Nissan Altima sedan at an<br />

average 12,495 a year, which just<br />

edges out the fuel-saving Toyota<br />

Prius hybrid at 12,279 miles. The<br />

Chevrolet Silverado leads the pack<br />

of pickup trucks with 12,514 miles<br />

racked up annually, followed<br />

closely by its corporate cousin,<br />

the GMC Sierra 1500 with 12,360<br />

on the odometer. The salesleading<br />

Ford F-150 came in fifth,<br />

only a few hundred miles behind<br />

the leaders.<br />

The 10 Most Driven Vehicles<br />

In The U.S.<br />

• Chevrolet Suburban: 14,299<br />

annual miles driven<br />

• GMC Yukon XL: 14,109 annual<br />

miles driven<br />

• Chevrolet Tahoe: 13,645 annual<br />

miles driven<br />

• Toyota Sequoia: 13,525 annual<br />

miles driven<br />

• GMC Yukon: 13,396 annual<br />

miles driven<br />

• Honda Odyssey: 13,282 annual<br />

miles driven<br />

• Honda Pilot: 13,273 annual<br />

miles driven<br />

• Cadillac Escalade ESV: 13,257<br />

annual miles driven<br />

• Ford Expedition: 13,112 annual<br />

miles driven<br />

• Toyota 4Runner: 13,019 annual<br />

miles driven<br />

The 10 Least-Driven Vehicles In<br />

The U.S.<br />

• Chevrolet Corvette Convertible:<br />

4,365 annual miles driven<br />

• Porsche 911 Convertible: 4,52<br />

annual miles driven<br />

• Porsche 911 Coupe: 4,63<br />

annual miles driven<br />

• Chevrolet Corvette Coupe: 4,93<br />

• Mercedes-Benz SL-Class<br />

Convertible: 6,217 annual miles<br />

driven<br />

• Mazda MX-5 Miata Convertible:<br />

6,927 annual miles driven<br />

• BMW 6 Series Convertible:<br />

7,697 annual miles driven<br />

• Ford Mustang Convertible:<br />

8,457 annual miles driven<br />

• BMW 6 Series Coupe: 8,895<br />

annual miles driven<br />

• Ford Mustang Coupe: 8,990:<br />

annual miles driven<br />

76 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

IoT and the Digital<br />

Transformation of the<br />

<strong>Automotive</strong> Industry<br />

According to recent estimates, connected cars will represent 98 percent of<br />

all cars sold by 2020 – a marked contrast to 2015’s reported 35 percent<br />

While we’re not yet piloting<br />

those flying cars that we’ve been<br />

promised since the 1960s, today’s<br />

automobiles are about as hightech<br />

as they come. Advances in IoT<br />

technology allow us to maintain a<br />

seamless connection to our digital<br />

lifestyle on the go, leveraging<br />

compatible infrastructure around<br />

us to help us do more, go farther,<br />

and travel safer.<br />

Today, connected cars are among<br />

the top IoT segments, and as<br />

consumer expectations continue<br />

to rise, the pressure is on for the<br />

automotive industry to meet the<br />

demand.<br />

<strong>Automotive</strong> IoT functionality<br />

to meet our changing needs<br />

According to recent estimates,<br />

connected cars will represent<br />

98 percent of all cars sold by<br />

2020 – a marked contrast to<br />

2015’s reported 35 percent. The<br />

movement towards self-driving<br />

and fully autonomous cars is a<br />

shift that is already making waves<br />

in the way vehicles are designed<br />

and manufactured.<br />

As IoT becomes more<br />

sophisticated and ubiquitous, car<br />

manufacturers are under pressure<br />

to innovate and to better connect<br />

with their customers’ needs<br />

to ensure they are delivering<br />

value. Manufacturers who<br />

have already completed their<br />

digital transformation are better<br />

equipped to engage with this<br />

data, while those that have not<br />

yet begun will likely fail at some<br />

point, if not sooner, then later.<br />

Why the connected factory<br />

will prevail<br />

When you look at the efficiencies<br />

that IoT and sensor connectivity<br />

provides at the manufacturing<br />

level, there is little doubt that new<br />

manufacturers and early adopters<br />

are reaping the most benefit.<br />

The advantages to a connected<br />

environment in automotive<br />

manufacturing include:<br />

• Greater machine efficiency<br />

reduces error and waste<br />

• Predictive analysis of machine<br />

function reduces downtime<br />

• Transparent processes optimize<br />

time for key personnel and factory<br />

management<br />

• Real-time visibility into all aspects<br />

of the manufacturing process<br />

eliminates silos<br />

• Deliver products into the market<br />

faster<br />

• Trace anomalies at a granular<br />

level<br />

• Reduce overhead, streamline<br />

processes<br />

78 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

Additionally, IoT delivers<br />

actionable data to all departments<br />

and stakeholders throughout the<br />

supply chain. From the finance<br />

department to R&D, IoT data helps<br />

teams understand everything<br />

from how processes affect the<br />

bottom line to how customers<br />

are using the end product. From<br />

end-to-end, new efficiencies can<br />

be realized simply by adopting an<br />

agile posture.<br />

Making customers happy<br />

With so much competition in the<br />

automotive realm, new products<br />

must deliver a mix of innovation,<br />

efficiency, and value. Price points<br />

are coming down on all but the<br />

most exclusive cars, and it is no<br />

longer a luxury to have access<br />

to today’s most exciting IoT<br />

developments.<br />

The more a manufacturer knows<br />

how customers are using their<br />

products, the better they will<br />

be able to predict what features<br />

should be included or improved<br />

in the future. This will allow<br />

them to deliver newer, better,<br />

and more exciting riffs on the<br />

most prominent trends and<br />

technologies, whatever they<br />

might be.<br />

This would only be possible if a<br />

company could harness the vast<br />

amounts of data that automotive<br />

IoT devices capture, making the<br />

connected automobile factory<br />

an absolute in our not-too-distant<br />

future.<br />

80 JULY <strong>2018</strong>


Driving Synergies<br />

11.–15.9.<strong>2018</strong><br />

15. Mobilite çözümlerinin eşsiz çeşitliliğini Automechanika Frankfurt‘ta<br />

deneyimleyin. Ekipman, parça, aksesuar, yönetim ve servise ek<br />

olarak, lastik endüstrisi de ilk kez Automechanika Frankfurt’ta yer<br />

alacak. Dünyanın önde gelen iki fuarı Automechanika ve REIFEN,<br />

tek bir çatı altında Almanya’nın en uluslararası fuar alanında.<br />

Otomotiv endüstrisinin en büyük buluşma platformunda lastik<br />

ve servis pazarını keşfedin!<br />

www.automechanika.com<br />

info@turkey.messefrankfurt.com<br />

Tel. +90-216-384 50 50<br />

25 th<br />

Automechanika<br />

Frankfurt


Monthly automotive aftermarket magazine<br />

Turkey’s automotive exports<br />

prosper and account for 20<br />

pct of overall exports<br />

The automotive industry, which led Turkish exports for the last 12 years,<br />

has kept an upward trend over the last 28 months.<br />

The sector’s exports amounted to $2.8 billion in May with an increase of<br />

8 percent compared to the same month of last year, according to the May<br />

data of Uludağ <strong>Automotive</strong> Industry Exporters’ Association (OİB).<br />

It once again shouldered a one-fifth of Turkey’s total exports with a share of<br />

almost 20 percent.<br />

Having achieved its highest May figures so far, the sector boosted its<br />

exports by 17 percent in the first five months from January to May, reaching<br />

$13.9 billion, as it maintained leading position in Turkey’s exports.<br />

In terms of product groups,<br />

exports of automotive subindustry<br />

increased 24 percent to reach<br />

$1 billion in May. Automobile<br />

exports, however, decreased<br />

by 4 percent to $1.05 billion,<br />

while exports of light commercial<br />

vehicles rose by 9 percent to $471<br />

million. Meanwhile, exports of<br />

buses, minibuses and midibuses<br />

decreased by 4 percent to $149<br />

million during this period.<br />

<strong>Exports</strong> to Germany, the largest<br />

market in the automotive subindustry,<br />

rose by 23 percent,<br />

followed by France with 27<br />

percent, Romania with 47<br />

percent, the U.S. with 49 percent<br />

and Russia with 56 percent.<br />

<strong>Exports</strong> to France, the largest<br />

market in automobile exports,<br />

rose by 23 percent, followed by<br />

the U.K. with 23 percent and the<br />

Netherlands with 122 percent,<br />

while exports to Germany<br />

decreased by 29 percent. It was<br />

followed by Italy with 12 percent,<br />

Israel with 19 percent and Poland<br />

with 36 percent.<br />

82 JULY <strong>2018</strong>


Monthly automotive aftermarket magazine<br />

U.K. exports, the largest market<br />

for light commercial vehicles,<br />

fell by 7 percent. <strong>Exports</strong> in the<br />

same product group increased<br />

by 37 percent in Italy, 23 percent<br />

in France and 26 percent in<br />

Germany.In the bus-minibusmidibus<br />

product group, exports<br />

to Germany - the biggest market<br />

for Turkish makers - experienced<br />

a 23 percent decrease, followed<br />

by France with 26 percent. At<br />

the same time, exports to Italy<br />

rose by 68 percent. Sales in the<br />

U.K. and Spain for this group fell<br />

by 35 percent and 184 percent,<br />

respectively.<br />

On a country-by-country basis,<br />

exports to Germany, the largest<br />

market, rose by 5 percent to<br />

$423 million, while exports to the<br />

second largest market, Italy, stood<br />

at $310 million with an increase<br />

of 5 percent. Meanwhile, exports<br />

to France, the third largest<br />

market for Turkey's automotive<br />

exports, increased by 16 percent<br />

to $308 million. The 23 percent<br />

increase in automobiles and 91<br />

percent increase in subindustry<br />

exports were also effective in this<br />

significant increase in France.<br />

Among other important markets,<br />

the Netherlands recorded an<br />

increase of 40 percent in exports,<br />

followed by Romania with 42<br />

percent and Russia with 94<br />

percent, while exports to the U.S.<br />

dropped by 50 percent. The 122<br />

percent increase in automobile<br />

and 91 percent increase in<br />

subindustry exports were also<br />

effective in this significant increase<br />

in the Netherlands, while the 294<br />

percent increase in automobile<br />

and 56 percent increase in subindustry<br />

exports were reflected on<br />

the exports to Russia.<br />

With regards to the decrease in<br />

exports to the U.S., on the other<br />

hand, a 100 percent drop in<br />

automobile exports was the main<br />

factor. <strong>Exports</strong> to the European<br />

Union, the largest market in the<br />

country group, increased by 10<br />

percent to $2.2 billion. The share<br />

of EU countries in total exports<br />

was 80 percent in this period.<br />

Among the alternative markets,<br />

African and CIS (Commonwealth<br />

of Independent States) countries<br />

recorded an increase of 33<br />

percent each, while exports to the<br />

Middle Eastern countries dropped<br />

by 17 percent in May.<br />

84 JULY <strong>2018</strong>

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